Russia’s Emergency Rate Hike Fails to Lift Ruble After Crash
- Central bank trying to stabilize currency after rout amid war
- Bank of Russia recently suspended purchase of foreign currency
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Russia’s central bank raised interest rates sharply and said another increase is possible, but fell short of reversing declines in the ruble amid one of the steepest depreciations in emerging markets.
Policymakers lifted their benchmark to 12% from 8.5%, the second straight increase and the sharpest since the immediate aftermath of Russia’s invasion of Ukraine almost 18 months ago. The emergency meeting was called after the ruble briefly broke through 100 to the dollar for the first time since March last year.